New construction 4 plex built and sold Phoenix

8 Replies

Hi Biggerpockets,

Just wanted to share a project that I recently completed/sold and go over some numbers about the project.

Bought the lot in 2019 for $58,000 in south Phoenix (7th street and dobbins) and put 50% down and borrowed the rest from a private lender

Built the 4 plex for $400k ($100k per unit)

Asked $750k on the sales price, got $800k with multiple offers in the first week

Each unit is 2 bed 1 bath, 750 sq ft and rents between $1,350-$1,450. Sold around a 6% cap rate so the buyer got a great deal on a new build with warranties and I made a profit I was happy with

I have an 18 unit project going in south Phoenix as well and will update on that project in the coming months.

Originally posted by @Brett Tvenge :

@Rylan Lacey nice work rylan, your numbers and work look great

Thanks Brett,

With the rapid appreciation here in Phoenix I’m hoping the numbers will be even better with the next couple of projects
 

Congratulations Ryan. The numbers and the property look great. Couple of quick questions  How did you fund the project? HM/self-funding/bank etc? Your overall construction costs came to about $135 per sqft? 

Originally posted by @Preetham Gowda :

Congratulations Ryan. The numbers and the property look great. Couple of quick questions  How did you fund the project? HM/self-funding/bank etc? Your overall construction costs came to about $135 per sqft? 

 I got the project funded with a hard money lender here in Arizona. My actual construction loan was $305,000 for the project plus $30,000 owed on the land, and then the lender allowed me to cash out refinance once the project was nearly complete with a total loan amount of $400,000. So cost per sq ft for underground/utilities, offsites, and buildings came to $102 per sq ft. Im able to get it cheap since im also a licensed GC. Due to increased costs due to covid however I’m right around $125 per sq ft for construction now on my other projects

Originally posted by @Rylan Lacey :
Originally posted by @Preetham Gowda:

Congratulations Ryan. The numbers and the property look great. Couple of quick questions  How did you fund the project? HM/self-funding/bank etc? Your overall construction costs came to about $135 per sqft? 

 I got the project funded with a hard money lender here in Arizona. My actual construction loan was $305,000 for the project plus $30,000 owed on the land, and then the lender allowed me to cash out refinance once the project was nearly complete with a total loan amount of $400,000. So cost per sq ft for underground/utilities, offsites, and buildings came to $102 per sq ft. Im able to get it cheap since im also a licensed GC. Due to increased costs due to covid however I’m right around $125 per sq ft for construction now on my other projects

 Great numbers. Thanks for explaining.